Effective 1/1/2026, the taxable revenue threshold for business households and individuals has been significantly raised to above 1 billion VND per year.

This change, outlined in Decree 141/2026 (amending Decree 68/2026), specifies that business households and individuals engaged in production or business activities with annual revenue of 1 billion VND or less are exempt from value-added tax (VAT).

Similarly, for personal income tax (PIT), resident individuals with annual revenue of 1 billion VND or less are not required to pay PIT (Clause 1, Article 4 of Decree 68/2026, as amended by Decree 141/2026).

For business households and individuals who have already paid VAT and PIT for business activities but whose actual annual revenue falls at or below 1 billion VND, overpaid taxes will be processed. This processing includes offsetting, refunding, or a combination of both against state budget collections, in accordance with tax administration laws (Clause 2, Article 12 of Decree 68/2026, as amended by Decree 141/2026).

For instance, Ms. Duong Huyen, a souvenir shop owner with an average annual revenue of 800-900 million VND, inquired about her eligibility for a refund. Lawyer Pham Thanh Binh from Bao Ngoc Law Firm in Hanoi confirmed that the taxes she paid for Q1/2026 would be processed through offsetting, refunding, or a combination of both against state budget collections.